CAT Strategic Metals Requests Trading Halt and Provides Update ON Contemplated Rto Transaction and Offtake Agreement

1015 - 789 West Pender Street, Vancouver, BC. V6H 1H2 - CSE - CAT

CAT STRATEGIC METALS REQUESTS TRADING HALT AND PROVIDES UPDATE ON

CONTEMPLATED RTO TRANSACTION AND OFFTAKE AGREEMENT

Vancouver, BC May 6, 2019 – Canadian development company, CAT Strategic Metals Corp. (CSE –

CAT) (“CAT” or the “Company”) announces that it has requested a trading halt from the regulators

with respect to the contemplated reverse take -over transaction (the “Transaction”) with Zimbabwe

Lithium Company (Mauritius) Limited (“ZIM”) for the exploitation of the the Kamativi Tailings

Lithium Project (the “Project”), as CAT and ZIM have agreed to move forward with the completion of

the Transaction, such Transaction constituting a Fundamental Change as per Canadian Securities

Exchange (the “ CSE”) Policies, requiring a trading halt of the Company’s secu rities. The Company

expects to distribute to its shareholders the information circular and related listing statement

describing the Transaction within the next calendar month. Trading in the Company’s shares will

resume upon completion of the Transaction. Completion of the Transaction is subject, among other

things, to shareholders and CSE approval.

In addition, the Company announces that the due diligence for Term Sheet signed between

Transamine Trading S.A. (“ Transamine”) and the Kamativi Tailings Compa ny (Pvt) Ltd (“ KTC”) for a

USD $9.5 Million finance and off -take facility for concentrate produced from the Kamativi Tailings

Lithium Project (the “ Project”) has been suspended . KTC and its shareholders have immediately

begun re-engaging previously interested off-take partners for the Project. CAT’s local Zimbabwean

partner (http://tiny.cc/pjil5y) holds a 60% equity stake in the Kamativi Tailings Company which is a

Joint Venture with the remaining 40% of the equity being held by Kamativi Tin Mines (Pvt) Ltd.

CAT has been advised that Transamine was satisfied with most aspects of the due diligence process

that had been completed. However, i t was further determined by Transamine that if a deal was

concluded, the current shareholding structure may not be satisfactory as currently proposed and

could potentially expose Transamine to undesired sanctions, scrutiny from OFAC and other potential

sanction entities.

The Project is located outside the village of Kamativi in Matabeleland North Province, Zimbabwe.

MSA of South-Africa updated in September 2018 the NI -43-101 report on the Kamativi project and

have estimated a 26.32 Mt Indicated resource grading 0,58% Li2O and 0,30 Mt Inferred resource

grading 0,62 Li2O with 70% being spodumene . The tailings deposit is associated with the disused

Kamativi tin mine and is located approximately 185 kilometres east-south-east of Victoria Falls.

Furthermore, the Company announces that its financial statements for the fin ancial year ended

December 31, 2018 will be filed late due to circumstances related to the Transaction that have

delayed the audit process. The Company expects to file said financial statements along with the

information circular and listing statement with respect to the contemplated Transaction.

Alain Moreau, a “ qualified person” as defined by NI 43 -101 – Standards of Disclosure for Mineral

Projects has approved the scientific and technical disclosure in this press release.

ON BEHALF OF THE BOARD

Richard Groome

Chairman and Interim President and CEO

Further information regarding the Company can be found on SEDAR at www.SEDAR.com, or by

contacting the Company directly at (604) 674-3145.

This news release may contain forward–looking statements. Forward-looking statements address

future events and conditions and therefore involve inherent risks and uncertainties. Actual results

may differ materially from those currently anticipated in such statements. Particular risks applicable

to this press release include risks associated with planned production, including the ability of the

company to achieve its targeted production outline due to regulatory, technical or economic

factors. In addition, there are risks associated with estimates of resources, and there is no guarantee

that a resource will have demonstrated economic viability as necessary to be classified as a

reserve. There is no guarantee that additional exploration work will result in significant increases to

resource estimates

Neither Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in

policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of

this release.

We seek safe harbour